Question 1 (a) Compare percentage of sales method with percentage of account receivable method in identifying...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Question 1 (a) Compare percentage of sales method with percentage of account receivable method in identifying allowance for doubtful debts. (b) Journalize the following transactions assuming the allowance method is used to account for uncollectible receivables. July 10 Received 75% of the $40,000 balance owed by Pearl Co., a bankrupt business. Wrote off remainder as uncollectible. Aug 15 Reinstated the account of Haider Co., which had been written off in the preceding year as uncollectible. Received $4,600 cash as full payment of Haider's account. Wrote off the $3,200 balance owed by SLP Inc. which had no assets. Sep 20 Dec 31 Based on an analysis of Accounts Receivable, it is determined that $15,000 will become uncollectible. The balance in Allowance for Doubtful Accounts on December 31 prior to adjustment is $500 credit. Determine the following: (a) The balance in Allowance for Doubtful Accounts after adjustment. (b) The Net Realizable Value of Accounts Receivable if the balance of receivable is $62,000. (c) Redo the entry for Dec 31 and questions a) and b) if the percent of sales method had been used to estimate uncollectible accounts expense at the rate of ½ of 1% of net sales of $2,000,000. Question 2 (a) Explain in short, the role of the International Federation of Accountants (IFAC) in shaping the accounting environment. (b) Explain the concept of integrated report. Question 1 (a) Compare percentage of sales method with percentage of account receivable method in identifying allowance for doubtful debts. (b) Journalize the following transactions assuming the allowance method is used to account for uncollectible receivables. July 10 Received 75% of the $40,000 balance owed by Pearl Co., a bankrupt business. Wrote off remainder as uncollectible. Aug 15 Reinstated the account of Haider Co., which had been written off in the preceding year as uncollectible. Received $4,600 cash as full payment of Haider's account. Wrote off the $3,200 balance owed by SLP Inc. which had no assets. Sep 20 Dec 31 Based on an analysis of Accounts Receivable, it is determined that $15,000 will become uncollectible. The balance in Allowance for Doubtful Accounts on December 31 prior to adjustment is $500 credit. Determine the following: (a) The balance in Allowance for Doubtful Accounts after adjustment. (b) The Net Realizable Value of Accounts Receivable if the balance of receivable is $62,000. (c) Redo the entry for Dec 31 and questions a) and b) if the percent of sales method had been used to estimate uncollectible accounts expense at the rate of ½ of 1% of net sales of $2,000,000. Question 2 (a) Explain in short, the role of the International Federation of Accountants (IFAC) in shaping the accounting environment. (b) Explain the concept of integrated report.
Expert Answer:
Answer rating: 100% (QA)
Q1 Q2 A iThe International Federation of Accountants IFAC is the global organization for the ... View the full answer
Related Book For
Accounting
ISBN: 978-1118608227
9th edition
Authors: Lew Edwards, John Medlin, Keryn Chalmers, Andreas Hellmann, Claire Beattie, Jodie Maxfield, John Hoggett
Posted Date:
Students also viewed these accounting questions
-
Journalize the following transactions of Funhouse Productions: July 8. Received a $120,000, 90-day, 8% note dated July 8 from Mystic Mermaid Company on account. Oct. 6. The note is dishonored by...
-
Journalize the following transactions for Alden Company: 201X Apr. 18 Received a $14,000, 90-day, 9% note from Becky Falcon in payment of account past due. May 9 Wrote off the Francis cleary account...
-
Journalize the following transactions for Alden Company: 201X Apr. 18 Received a $12,000, 90-day, 8.5% note from Alex Coates in payment of account past due. May 9 Wrote off the Barney Clark account...
-
Solve Utt = cUTT 0
-
On Thursday, May 28, 2009, in a presentation to financial analysts, the CEO of P&G announced a break from tradition. It would release Tide Basics, a value-oriented version of its leading Tide...
-
Which of the following is a valid way of evaluating the financial feasibility of a project? A. Return on investment B. Net present value C. Internal rate of return D. All of the above
-
When I (Rich Warms) was young, I served as a Peace Corps volunteer and lived in a town called Ouahigouya in the country then called Upper Volta (now Burkina Faso) in West Africa. I spent most of my...
-
Amber Company produces electronic fish finders. It makes two different fish finders: the standard model, which is produced in bulk and sells for $200, and the deluxe model, which comes in various...
-
Rudder Co. is authorized to issue 10,000 shares of $5 par common stock and enters into the following stock (treasury stock) transactions. Required: A. Record the journal entry for each transaction....
-
Pat and Mandy are married and have a son, Steve, age 8. Mandy, age 29, earns $40,000 annually from her job. Pat, age 31, earns $50,000 annually from his job. Assume that Pat will die before Mandy....
-
The ABC Factory produces and sells STUFF. The selling price per unit is $31, variable costs are $16 per unit, and total fixed costs are $6,500. ABC is in the 20% tax bracket. How many units of STUFF...
-
Assume that the initial deposit margin on a Canadian dollar futures contract is $2,200. If a person purchases a contract at $0.75 per Canadian dollar and the contract involves 127,000 Canadian...
-
Analyzed various types of research articles and learned about different research processes in the sciences, humanities, and creative arts, it's time to put what you've learned into practice. In this...
-
Mac Tools has paid out a per-share dividend of $4 on its common stock for the year just ended.Analysts expect that the company's earnings and dividends per share will grow at a rate of 12% for the...
-
Julie McCain is a regular commodities speculator. Currently, she is considering a short position in July oat contracts, which are currently trading at 312. Her analysis suggests that July oat...
-
Year-to-date, Conglomco has earned a 1.64 percent return, Supercorp has earned a 5.69 percent return, and Megaorg has earned a 0.23 percent return. If your portfolio is made up of 40 percent...
-
You are provided the following information: Capital Structure: Debt $ 60000 Equity $ 180000 The firm sold 50 year; $ 1000 face value, 5% bonds 10 years ago. These bonds trade at $ 930. You expect...
-
Imagine that your best friend knows you are taking a psychology course and wonders what psychology is all about. How would you define psychology for your friend? Write an essay on the discipline of...
-
On 2 January 2015, Johnston Ltd purchased a machine with a list price of $234 300 (including GST) and credit terms of 2/10, n/30. Payment was made within the discount period. Freight costs of $5400...
-
Ian Boardman has been appointed as the loans officer for the local community bank. One day, a person walks into the bank looking for a loan to buy a new car. List six items about that individual that...
-
The following is the equity of Bowral Ltd at 30 June 2016: Share capital (200000 fully paid ordinary shares) $400000 General reserve 200000 Retained earnings 10000 The transactions below occurred...
-
Define torsional section modulus.
-
An inverted \(T\)-beam of \(4 \mathrm{~m}\) span is simply supported at the ends. Its cross-section is 300 \(\mathrm{mm} \times 250 \mathrm{~mm} \times 10 \mathrm{~mm}\). If permissible stresses in...
-
A rolled steel joist \(400 \mathrm{~mm} \times 200 \mathrm{~mm} \times 20 \mathrm{~mm}\) is freely supported on a span of \(4 \mathrm{~m}\). The flanges are strengthened by two \(250 \mathrm{~mm}...
Study smarter with the SolutionInn App